Debt Recovery Solicitors
Preston Redman’s business debt recovery services include various types of enforcement.
Once Judgment has been obtained, if the other side still refuses to pay, you have a number of options open to you.
High Court Enforcement Officer
A High Court Enforcement Officer (HCEO) recovers debt and / or property using a Writ of Control or Writ of Possession. Preston Redman works with HCEOs to transfer County Court Judgments to High Court Writs so the officer can attend the Judgment debtor’s premises with a view to obtaining payment or removing goods or people. If payment is not received, goods will be removed by the officer and then sold at auction.
A Judgment debt has to be over £600 to use this type of enforcement and if they are successful the HCEO will recover its costs from the debtor.
Charging Order
If someone who owes you money owns a property or shares, it is possible to secure your Judgment against their share of the asset as security for the debt. People frequently ask, what is a charging order? The process turns an unsecured debt into a secured debt and involves making an application to the Court. In reply, the Court will grant an interim charging order. The interim charging order is served on all the relevant parties and any other creditors that are known and is registered at the Land Registry, which creates the security.
The next stage of the process depends on whether the interim charging order is opposed or not. If it is, a hearing will be listed to determine if the order should be made final. If there is no objection, the Court will make the order final and this can also be registered as updated security.
Once the final charging order is obtained, it can simply remain as security for the debt or you could force the sale of the property and / or shares to facilitate payment of the Judgment it secures. Order for sale proceedings are a second set of proceedings that can be taken to try to get your money back sooner than simply leaving the charging order registered as security, acknowledging that you are a secured creditor.
Attachment of Earnings
An attachment of earnings order can be applied for by a creditor against Judgment debtors who are employed, for a sum to be deducted at source from their salary in order to repay a Judgment debt they owe. This is why it does not work if the Judgment is against someone who is self-employed, because there is no employer to direct the order to.
An application can be made to the Court and paperwork will be sent out to the Defendant to complete, inviting them to make a repayment offer. If this is made and accepted, a suspended attachment of earnings order can be made so their employer does not find out about the Judgment debt. If they ignore the request or default, the Court can direct the order to the employer, instructing them to provide information about their salary and ordering them to pay an amount of money to the Court for onward transmission to the creditor.
Payment of the Judgment debt will stop an attachment of earnings or co-operation in the first instance so a suspended order is made instead of a full order.
Third Party Debt Order
If you are aware of the Judgment debtor’s bank account details and believe they have money in the account, you can apply to have the account frozen and the funds sent directly to you in lieu of the Judgment debt you are owed.
In a similar format to the charging order process, an interim third party debt order will be obtained first, followed by a hearing to determine if the third party debt order should be made final. This type of enforcement only works if there are available funds owed to the debtor.
You can also apply to other sources such as pension providers, insurance companies or employers. As long as the money they hold belongs solely to the Judgment debtor, you can apply to prevent the Judgment debtor from having access to the funds, bypassing them so you get paid instead. You can only apply against a joint bank account if all the money is owed by all the account holders.
Timing of the application is crucial, as the freezing of the account will only happen on the day the interim third party debt order is served on the third party.
Why choose Preston Redman?
Preston Redman provides candid, practical advice designed to recover your money as promptly and cost-effectively as possible. The Judgment debtor’s assets and ability to pay are assessed at the beginning of the case to ensure any Judgment will be able to be enforced.
If a Judgment debtor is being elusive or their financial position is unknown, a trace agent can be employed to ascertain their whereabouts and determine what assets they hold so you can make an informed decision about what type of enforcement action you wish to take.
Cost recoverability is important, as we know you do not want to throw good money after bad, and we will always seek to recover the debt with the first debt enforcement option or by way of multiple applications to maximise recovery, depending on the specific circumstances and sums owed.
To speak to one of our highly experienced Enforcement Lawyers, please contact our Bournemouth office on 01202 292 424 or fill in our online enquiry form for a quick response.
Please note that all content on our website is subject to the terms of our disclaimer.
